60.1K

Verified Solution

Link Copied!

Gibson construction Company acquired $14000 Req D CGM Sched

Gibson Construction Company began operations on January 1, Year 1, when it acquired $14,000 cash from the issuance of common stock. During the year, Gibson purchased $2,600 of direct raw materials and used $2,400 of the direct materials. There were 112 hours of direct labor worked at an average rate of $7 per hour paid in cash. The predetermined overhead rate was $3.00 per direct labor hour. The company started construction on three prefabricated buildings. The job cost sheets reflected the following allocations of costs to each building. Job 1 Job 2 Job 3 Direct Materials $ 500 1,000 900 Direct Labor Hours 32 50 30 The company paid $69 cash for indirect labor costs. Actual overhead cost paid in cash other than indirect labor was $259. Gibson completed Jobs 1 and 2 and sold Job 1 for $1,510 cash. The company incurred $150 of selling and administrative expenses that were paid in cash. Over or underapplied overhead is closed to Cost of Goods Sold. Required a. Record the preceding events in a horizontal statements model. The first event for Year 1 has been recorded as an example c. Record the closing entry for over- or underapplied manufacturing overhead in the horizontal statements model. assuming that the amount is insignificant. d. Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet for Year 1. Prepare a schedule of cost of goods manufactured and sold for Year 1. GIBSON CONSTRUCTION COMPANY Cost of Goods Manufactured and sold for Year 1 Raw materials available Raw materials used 0 Total manufacturing costs 0 Total work in process inventory 0 Cost of goods manufactured 0 Goods available for sale 0 Cost of goods sold S Prepare a schedule of cost of goods manufactured and sold for Year 1. GIBSON CONSTRUCTION COMPANY Cost of Goods Manufactured and sold for Year 1 0 0 Beginning finished goods inventory Beginning raw materials inventory Beginning work in process inventory Ending finished goods inventory 0 Total work in process inventory 0 Cost of goods manufactured 0 Goods available for sale Cost of goods sold $ 0 Prepare a schedule of cost of goods manufactured and sold for Year 1. GIBSON CONSTRUCTION COMPANY Cost of Goods Manufactured and sold for Year 1 0 0 Ending finished goods inventory Ending raw materials inventory Ending work in process inventory Labor Manufacturing overhead Purchases Total work in process inventory Cost of goods manufactured 0 Goods available for sale 0 Cost of goods sold $ 0

Answer & Explanation Solved by verified expert

See Answer